2004 International Conference Proceedings (April 2004)

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Title:
A Best-Practice Approach to Transforming Global Supply Chains
Abstract:
Supply chains vs. value chains. What is the difference? This article provides a bestpractice approach for leveraging knowledge to transform global supply chains into value chains. A value chain model and process map provide a transformation network. Communication and information systems are integrated as enablers of value chain transformation.
Authors:
Ralph G. Kauffman
Thomas A. Crimi
Topic:
Managing and Coordinating Supplier Relationships



Title:
Achieving the Lowest Supply Chain Costs through Decision Guidance Systems
Abstract:
Decision Guidance Systems provide supply managers with a powerful tool to handle complex sourcing issues. Supply organizations have several hundreds of items on one complex bid. Satisfying both user and multiple business unit objectives requires software that allows the sourcing team to rapidly analyze an unlimited number of alternatives. Doing so enables the firm to realize a higher percentage of implementable savings over traditional sourcing evaluation tools.
Authors:
Larry C. Giunipero, Ph.D., C.P.M.
Michael Concordia
Topic:
Leading Practices with Proven Results



Title:
Are Supply Managers Just Gold Diggers?
Abstract:
Organizations have huge reservoirs of gold in their operations. Supply management means creating and leading the supply chain to ensure continuity of supply, better service and more involvement with suppliers and others to provide our stakeholders unexpected positive cash flow. The key concept making this all possible is to understand where the gold is and how to dig it. The discussions and examples involve several different operations and processes and were purposely selected to challenge everyone in supply management to "dig for the gold" at their respective level of organizational influence and responsibility. Our challenge is to find the will and the way and learn to recover that Gold!
Authors:
Robert A. Kemp, Ph.D., C.P.M.
Topic:
Supply Management: A Strategic Perspective



Title:
Attaining a World Class Supply Management Organization through Strategic Initiatives
Abstract:
The presentation will focus on identifying and discussing strategic initiatives that will improve the effectiveness of a supply management organization. Strategic methodologies that will be covered include specific successfully proven tools and concepts involving enhancing the roles played by customers, suppliers, staffing and senior management, as well as blending in the appropriate technologies.
Authors:
Dr. Peter E. O’Reilly, C.P.M.
Topic:
Supply Management: A Strategic Perspective



Title:
Building Momentum for Organizational Development (A Case Study of the Philip Morris USA, Inc. C.P.M. Society)
Abstract:
Organizational capability is the foundation of organizational success. Without it, business strategies may not be properly developed or implemented. Creating a highly capable team requires vision, planning and a commitment to continuous organizational development. At Philip Morris USA, we are passionate about organizational development and we want to share our focus with you.
Authors:
Ronald E. Butler
Timothy R. Campbell
Topic:
Tools for the Effective Supply Manager



Title:
Business Continuity Planning in Supply Management
Abstract:
All business organizations are exposed to supply-side risk that can result in business failures, disruptions or shutdowns. This session will present a model for addressing business continuity and share various principles and effective practices obtained from in-depth case study research of leading-edge firms.
Authors:
George A. Zsidisin
Gary L. Ragatz
Steven A. Melnyk
Topic:
Tools for the Effective Supply Manager



Title:
Business Ethics = Social Responsibilty?
Abstract:
Is there a difference between business ethics and social responsibility? Are the two compatible or mutually exclusive? This paper raises questions about the overlap and reciprocally supportive interface between business ethics and social responsibility, as well as about their mutual exclusivity. It isolates several specific ethical and social responsibility topics for further exploration. Finally, this paper considers some of the implications of this debate for supply management professionals.
Authors:
Carla S. Lallatin, C.P.M., CPPO
Topic:
Professional Growth: The Key to Your Future



Title:
C.P.M.: The Best Warranty in the Marketplace
Abstract:
In today’s ever-increasing changes in the marketplace, having a C.P.M. certification can be one stabilizing element which can help assure your continued employment. Moreover, C.P.M.s generally receive more compensation than workers who are not certified. More and more organizations are realizing the added value that such certification brings. Notices in the newspapers and other employment guides request the “Certified Purchasing Management” requirement. Employers know that certification encompasses experience, education and the successful completion of four module examinations. These skill sets note competency!
Authors:
Cheryl O. Ransom, C.P.M., A.P.P.
Topic:
Professional Growth: The Key to Your Future



Title:
Calculating the Carrying Cost of Inventory
Abstract:
We will explore how the carrying cost of inventory is determined, what factors are (or should be) included, and how to use this information to measure cost savings from inventory reduction. (Hint: If you want lower inventory levels, the higher the cost to carry, the better.)
Authors:
Mary Lu Harding, C.P.M., CPIM
Topic:
Tools for the Effective Supply Manager



Title:
Challenges of Complexity in Global Manufacturing: Insights to Effective Supply Chain Management, Growth and Profitability
Abstract:
Complexity and inefficiency have overtaken a vast majority of manufacturers’ supply chains – particularly those of large companies striving to be global players. When ineffectively managed, the supply chain is robbing manufacturers of profits, market position, growth and return on assets – rendering them less competitive.
Authors:
Rick O’Connor
Topic:
Supply Management: A Strategic Perspective



Title:
Competition Requirements in Federal Government Subcontracting
Abstract:
Considering the fact that the United States economy is based on the concept of free trade, it should be no surprise that the policy of the Federal Government is to seek competition when placing prime contracts for the goods and services it uses. This policy is clearly established in the Competition in Contracting Act (CICA) and outlined in the Federal Acquisition Regulations (FAR) Part 6. FAR Part 6 provide detail guidance to Contracting Officers (CO’s) relative to their requirement to comply with the Federal Government’s policy of acquiring products and services on a full and open competitive basis. But to what degree must contractors comply with this “full and open competition” concept? Does the Competition in Contracting Act apply, in whole or in part, to prime contractors as they select their subcontractors? The focus of this workshop is to discuss the challenges and opportunities associated with establishing corporate policies that embrace prime contractor’s true competitive requirements when issui ng subcontracts under a Federal Government Prime contract.
Authors:
Jeffery A. White, C.P.M.
Topic:
Leading Practices with Proven Results



Title:
Contracting for Services: A Practical Review of the Contracting Process
Abstract:
Contracting for services differs from the typical purchasing contract for materials. The sourcing process is different and has a different set of challenges. We will review the basics of contracting for services, including what you need to receive from your end users and suppliers prior to formalizing a contract. Some of the important elements include the detailed Scope of Work (SOW), the contract terms and conditions, and the process for finding a supplier. In this session, we will also review the pros and cons of using a reverse auction to source services.
Authors:
Jim Haining, C.P.M., A.P.P.
Topic:
Tools for the Effective Supply Manager



Title:
Creating Customer Value through Supplier Performance
Abstract:
Many supply chain management processes focus strongly on supply side issues, underestimating the critical link of supplier performance to customer satisfaction. Organizations must eliminate functional barriers and develop operating plans that integrate the needs and requirements of both customers and suppliers in order to ensure the success of both.
Authors:
Richard G. Weissman, C.P.M.
Topic:
Supply Management: A Strategic Perspective



Title:
Deciding Where to Source – Local, National, Regional, or Global
Abstract:
The choice to import or localize supply is one that requires ongoing analysis and a willingness to adjust to emerging realities in the market. To become inflexible and static is to risk being overtaken by competitors with more responsive and current systems. A recurring sourcing process must weigh the business requirement’s unique drivers to local, regional or global supply with the recognition that circumstances change over time. This positions Supply Management to optimally locate its supply base. A nine step assessment thought process forces evaluation of suppliers and market change to make informed geographical choices, not just at inception, but ongoing.
Authors:
Stephen C. Rogers
Lisa L. Cooley
Topic:
Leading Practices with Proven Results



Title:
Delivering World Class Service
Abstract:
Supply managers provide professional services to a broad range of internal customers. These customers expect certain performance levels which may be spelled out in service level agreements. To serve them well, a company’s supply management organization needs to identify its customers, understand their needs, and deliver world class service that meets or exceeds customer expectations. This paper discusses what it means to deliver outstanding service and how to deliver service excellence on an ongoing basis. It presents a proven tool that enables supply management professionals to spot service weaknesses and take action to correct them. And it offers a series of strategies that help supply management organizations to deliver service excellence every day.
Authors:
Eberhard E. Scheuing, Ph.D., C.P.M.
Topic:
Leading Practices with Proven Results



Title:
Demand Management: Optimizing the Demand-Side Drivers of Total Cost of Ownership
Abstract:
This session introduced, defined and explained through example an innovative new approach to total cost of ownership reduction. Traditional strategic sourcing programs have focused on supply-side cost dri vers and supplier-facing procurement processes. Demand Management aims at optimizing internal practices, processes and policies that reduce the usage of goods and services to improve total cost of ownership.
Authors:
Rick Hoole
Topic:
Leading Practices with Proven Results



Title:
Developing an Effective Sourcing Plan for Volatile Priced Commodities
Abstract:
You may have years of purchasing experience but become frustrated at trying to create a purchase plan for commodities so dynamic that prices change dramatically from day to day or even from hour to hour. When markets are on the move, you must have a clear understanding of the myriad factors that make up the commodity price and how to systemically develop a source plan for your purchases. This session will provide a practical model to get you moving in the direction of evaluating fundamental and technical information that impacts your commodity. You want to know how to study price history and other relevant data to generate a window on the future as you reach towards a sourcing strategy. We will share concepts of managing commodity buy and sell decisions and using your inventory levels as a means to buy over a time period at price levels ave raging below the market as well as how to negotiate concessions from suppliers of the cash commodity. This session will also deliver the tools and processes for the experienced buyer to understand the key steps leading towards a well-thought-out sourcing plan for a dynamic commodity, including how to negotiate favorable price concessions from your suppliers.
Authors:
George E. Cantrell
William L. Michels, C.P.M.
Topic:
Tools for the Effective Supply Manager



Title:
DoD's Transformation Issues
Abstract:
It has been almost 10 years since the Federal Acquisition Regulations have gone through a major overhaul. Even then, the Defense Federal Acquisition Regulations Supplement (DFARS) was not itself overhauled. In March 2003, the DoD announced that it has initiated a Defense Task Force for Regulation Transformation with a focus on the transformation of FAR and DFARS. The reported aim was to shorten DoD rule -making processes by 50% and to eliminate all unnecessary rules, with three phases in the released DFARS plan.
Authors:
Jeffery A. White, C.P.M.
Charles Rumbaugh
Topic:
Professional Growth: The Key to Your Future



Title:
Enhancing Supply Competitiveness through Innovation and Branding
Abstract:
Sustaining the competitive edge in an ever-demanding environment is a critical supply success factor. To ensure the likelihood of sustained competitiveness, supply must embrace both innovation and branding as paths to triumph. Understanding how to maintain competitive supply posture is one of the most essential demands of an enlightened supply professional. The session details the mechanics of how to apply this mindset to supply environments at various levels of development.
Authors:
Alvin J. Williams, Ph.D.
Topic:
Supply Management: A Strategic Perspective



Title:
Enhancing Supply Network Performance
Abstract:
Every organization is only as good as its pool of suppliers and their performance. As supply management teams recognize the limitations of traditional supply chains and the need for closer integration of all supply stream participants, they use the Internet to build virtual organizations and supply networks. This paper will identify the nature of a firm’s competitive advantage, highlight emerging roles of supply chain participants, and emphasize the need to create value networks. Encouraging thinking outside the box, it presents a checklist of best practices in supply and a framework for achieving world class value network leadership.
Authors:
Eberhard E. Scheuing, Ph.D., C.P.M.
Robert R. Fleck, Jr.
Topic:
Leading Practices with Proven Results



Title:
Essentials of E-Sourcing: A Practical Guide for Managing the RFX Process in an E Environment
Abstract:
Many companies are discovering the advantages of an eSourcing tool. It can reduce process time, provide a more available library of RFx documents, generate sourcing savings, and in some instances, drive incremental revenue . However, by not understanding some of the issues involved in implementing an eSourcing tool and managing RFxs in the new “e” environment, some companies may not realize the full potential of the tool. Worse, they may have wasted money by purchasing a tool that is used ineffectively or not used at all.
Authors:
Mary D. Lewis
Topic:
Tools for the Effective Supply Manager



Title:
Evaluating the Financial Condition of Suppliers
Abstract:
A challenge facing many supply management professionals is that of using basic accounting information to evaluate supplier financial health. This is especially important because of the need to exercise due diligence when selecting and monitoring sources. The following section provides an overview of the importance and challenges of monitoring supplier financial health. Next, is an overview of selected basic accounting techniques and how they are useful in monitoring supplier financial health. The third section discusses how purchasing and supply professionals can use common non-financial sources of information to identify suppliers who might be in financial distress. Finally, we discuss additional sources, including professionals in other areas of your organization, that can help you monitor supplier financial health.
Authors:
Dr. J. Patrick Cancro, C.P.M., A.P.P.
Dr. Michael A. McGinnis, C.P.M., A.P.P.
Topic:
Managing and Coordinating Supplier Relationships



Title:
Fightin' for Our Lives: Supply Managers on a Marketing Mission
Abstract:
Supply professionals are experiencing various levels of acceptance within their organizations. Many purchasing professionals find themselves still unknown and unappreciated by both their senior managers and their internal customers. Others are acknowledged by senior management as critical to the competitive edge their organizations are seeking. Supply managers can no longer wait to be discovered. If procurement is to survive, it is up to those working in the profession to make it happen. Even those respected today, may find themselves unknown tomorrow.
Authors:
Marilyn Gettinger, C.P.M.
Topic:
Supply Management: A Strategic Perspective



Title:
Focusing Your C.P.M. and A.P.P. Study and Test Taking Skills
Abstract:
This paper helps the reader develop a focused study strategy for the Certified Purchasing Manager (C.P.M.) and Accredited Purchasing Practitioner (A.P.P.) examinations. The first section briefly reviews the requirements for the C.P.M. and A.P.P. Next, it explains how to use the C.P.M. and A.P.P. Diagnostic Practice Exams to prepare focused study efforts. The third section discusses study and test taking skills that can help the student successfully prepare for the C.P.M. and A.P.P. examinations. The final section provides other useful test taking tips.
Authors:
Dr. Michael A. McGinnis, C.P.M., A.P.P.
Dr. J. Patrick Cancro, C.P.M., A.P.P.
Topic:
Professional Growth: The Key to Your Future



Title:
From Failure – Lessons Taught By A Cracked Bell
Abstract:
This paper supports a workshop to be held at the 89th Annual ISM International Purchasing Conference to be held in Philadelphia, Pennsylvania from April 25 through 28, 2004. In recent years, there has been a great deal of interest shown by Supply Management professionals in examples of how Six Sigma could be applied to Service sector environments.
Authors:
Kevin Williams, C.P.M.
Topic:
Leading Practices with Proven Results



Title:
Global Sourcing: What You Need to Know
Abstract:
Getting the greatest value for every dollar spent has become a common business imperative that has top management asking the question “are we buying from the best place in the world?” Implementing a successful global sourcing initiative can be one of the supply manager's most challenging and rewarding experiences. The probability of success can be greatly increased by learning the correct steps throughout the global sourcing process. The purpose of this presentation is to improve the productivity and success of those new to global sourcing initiatives by outlining a process of the nuts and bolts based on the experiences of those who have “been there, done that”.
Authors:
Robi Bendorf, C.P.M.
Topic:
Tools for the Effective Supply Manager



Title:
How Mature is Your Supply Chain? A Capability Maturity Model
Abstract:
Speed to market is one of the most critical dimensions of competition in today’s markets. As more organizations seek to focus on their key core competencies, the outsourcing of critical business processes such as product design and development, manufacturing, sales, marketing, and even distribution, is becoming an increasing trend. As outsourcing occurs, the role of procurement will escalate, and management of information flows, physical flows, and relationships will become more important. In order to effectively assess the requirements for deploying outsourcing strategies, companies will need to understand the relative maturity of their supply management function using assessment tools (such as the Supply Chain Capability Maturity Model.) Use of a maturity model is critical in establishing baseline performance of current sourcing processes, as well as defining the requirements for future outsourcing of business processes. The model can also be used to assess the maturity of other processes in the integrated supply chain, including design, make, deliver, sell, and service processes.
Authors:
Robert B. Handfield, Ph.D.
Samuel L. Straight
Topic:
Supply Management: A Strategic Perspective



Title:
Implementing VMI to Reduce Direct and Indirect Cost
Abstract:
Vendor-managed inventory (VMI) is a lean strategy in which the supplier is totally responsible for effective supply. A successful implementation requires planning and integration between the manufacturer and the supplier. This presentation will suggest opportunities for VMI and cover the business requirements by presenting two cases implemented by Wacker, for direct and indirect materials. The benefits are quantified through elimination of transactions and related processing costs.
Authors:
James M. Truog
Topic:
Leading Practices with Proven Results



Title:
Is Your Organization E-Literate? Selecting the Right E-Tools
Abstract:
Modern supply managers are faced with an increasingly complex selection of electronic “tools” with which to perform their responsibilities. While such e-tools can provide much-needed transactional support and strategic information, the number of providers and their arsenal of eoptions is extremely confusing. The purpose of this article is to provide a structured approach for the supply manager to develop and execute a strategic evaluation of the various e-options, which are available with such tools.
Authors:
Ernest G. Gabbard, C.P.M., CPCM
Topic:
Tools for the Effective Supply Manager



Title:
Japan's KEIRETSU as a Strategic Relationship with Suppliers
Abstract:
“KEIRETSU” has longtime been viewed as Japanese sub-contractors’ transaction system, very particular and notorious among U.S. and European businesses. Today’s rapidly changing business-world may result in the need to adjust its ways of working and its concept to a successful marketplace if we are to achieve high levels of sustainable success. We see some excellent Japanese companies are now modifying their “KEIRETSU” system in order to succeed in a global market. As KEIRETSU system is one of the many transaction types, we have reached a conclusion that the supplier relationship would be a key to define and describe better this transaction system. This workshop shows how traditional supplier relationship has been refined and some development models help us maximize the value of our supply base and our personal value to the organization.
Authors:
Osamu (Sam) Uehara
Topic:
Managing and Coordinating Supplier Relationships



Title:
KPIs: Measuring Indirect Material Suppliers and Service Providers
Abstract:
Key Performance Indicators (KPIs) have traditionally been used to measure and manage direct material suppliers. Direct materials, by their very nature, lend themselves more easily to KPIs – direct materials are more tangible and can be measured fairly easily. Supply chain professionals managing indirect material suppliers and service providers are challenged with developing KPIs that specifically address the differences associated with these suppliers.
Authors:
Karen M. Fedele, C.P.M.
Tim Dolan, C.P.M.
Topic:
Managing and Coordinating Supplier Relationships



Title:
Key Skill Sets for the Purchasing Manager of the Future
Abstract:
The objective of this study was to ascertain the state of purchasing/supply education and training as it currently exists and forecast what changes are coming in the next five years. This includes the perceived needs for training, the types of training being pursued by Purchasing/Supply Management personnel and the contexts within which training is planned and delivered. The results of the study suggest that the pressure to reduce costs across industries is increasing. In response, however, purchasing executives will seek managers who possess skills in management of supplier relationships, improved communication and presentation skills, knowledge of ethics, and ability to effectively manage the end to end supply chain through improved business acumen and an understanding of the “big picture” from a strategic perspective.
Authors:
Robert B. Handfield, Ph.D.
Larry Giunipero, Ph.D.
Topic:
Professional Growth: The Key to Your Future



Title:
Knowledge Management Process: The Care and Feeding of Knowledge Workers
Abstract:
Successful organizations are often described as “learning organizations” composed of “knowledge workers” who continually learn and apply learning to changing situations as standard operating procedure. Knowledge management is a systematic and organized approach to making relevant knowledge visible and widely accessible so that learning can occur. Knowledge management includes identifying and mapping existing intellectual assets as well as creating new knowledge within the organization. To be successful, an organization’s knowledge management process must be reflected in its culture, strategy, policy, and practice. A key challenge for purchasing and supply professionals is to develop common processes, procedures, and practices across individual entities such as business units, divisions, plants, mills, etc. One aspect of this challenge is capturing and transferring knowledge between and among these individual entities. For example, a team in one division develops an effective tool that never gets shared or used by other teams. Or, people in one location have no idea how individuals in another geographical location do things. Or, the company invests in knowledge management software, and fe w people use it. The development of a knowledge management strategy, process, and system helps to ensure that the knowledge that exists in one area of the company is captured, shared, and used by others. This paper addresses the challenges and opportunities of creating a knowledge management process.
Authors:
Anna E. Flynn, Ph.D., C.P.M.
Topic:
Supply Management: A Strategic Perspective



Title:
Learning from the Award-Winning Korean Public Procurement Service
Abstract:
The Public Procurement Service of Korea (PPS) received the first award from the United Nations in 2003, an award given to institutions that make great contributions to improving public service. Learn about the improvements in public service and in the quality of public service processes, as well as innovations in public service that contributed to earning the U.N. award. You will gain a better understanding of the Korean PPS that will help you to make more effective purchasing overseas strategies.
Authors:
Geon-Cheol Shin
Myung Sub Park
Topic:
Tools for the Effective Supply Manager



Title:
Leveraging Strategic Alliances
Abstract:
Strategic alliances have demonstrated tremendous impact in reducing total purchasing spend and enhancing innovative product design. However, the reservoir of capable and willing suppliers is limited. Thus, effective supply managers need to develop the ability to promote commitment to alliances among suppliers. Effective alliances imply designing aspects of the supply chain, selection of appropriate suppliers, and leveraging effective partnering behavior where appropriate. This presentation will help supply managers work their way through this process.
Authors:
Michael E. Smith, Ph.D., C.Q.A.
Lee Buddress, Ph.D., C.P.M.
Alan Raedels, Ph.D., C.P.M.
Topic:
Supply Management: A Strategic Perspective



Title:
Live Long and Prosper: Make Your Employment Future More Secure
Abstract:
Pick up any business magazine or leading newspaper nowadays and you begin to wonder what happened to the concept of secure employment. Not only are people being laid off in droves but the kind of folks who are being laid off are the ones everyone thought would have nothing to worry about – Harvard alumni, those with top-quality computer science degrees, plenty of tactical experience etc.
Authors:
Elizabeth Smith Barnes
Nick Little, MCIPS
Topic:
Professional Growth: The Key to Your Future



Title:
Management of Supplier Relationships Through an Effective Dispute Resolution Process
Abstract:
The evolving methods of resolving, and mitigating, supplier conflicts will be explored including an overview of Alternative Dispute Resolution (ADR) methods used in drafting costeffective subcontract “Arbitration” clauses. Specifically, the concerns/pitfalls in drafting subcontract dispute resolution terms and conditions will be presented and discussed in this interactive session.
Authors:
Charles E. Rumbaugh, J.D., CPCM
Topic:
Managing and Coordinating Supplier Relationships



Title:
Managing Your CEO: Communication and Support
Abstract:
Purchasing has many customers and stakeholders; none more important than your own CEO. Most multi-function initiatives begin with a statement of objectives or requirements, none more popular than “build executive support”. Such support is indeed vital for any commitment of resources whether staff time or financial investment. Lack of such support is often cited as a reason for project failure. Purchasing and Supply Management departments have never been more visible as they drive cost reduction strategies throughout the supply chain. However, lasting department and personal success will not be maintained by reported cost savings alone. A program of well conceived and business relevant communications and metrics is vital. This paper will outline a number of proven and provocative principles on which a successful CEO relationship can be built and the requisite degree of support can be assured.
Authors:
Lowell M. Hoffman
Topic:
Supply Management: A Strategic Perspective



Title:
Managing Your Employability
Abstract:
Our workplaces have changed so much over the last 10 years. Businesses are striving harder than ever to be successful, and often the first step that companies take to assure profitability is to downsize its workforce. Repeated downsizing efforts dig deep into the core of a company’s workforce, very often resulting in the elimination of highly skilled employees. It frequently appears that the employees have no control and that they are disposable. If you are on the receiving end of a downsizing effort, it can be devastating, both monetarily and emotionally.
Authors:
Kathi M. Jobkar, C.P.M.
Topic:
Professional Growth: The Key to Your Future



Title:
Materials Management Opportunities in Operational and Maintenance Products Maintenance vs. Procurement – How to Win the Battle and the War
Abstract:
In most organizations there exists a constant battle over the stocking, ordering, and maintaining of products required by maintenance and operations. The Materials Management and Purchasing functions are often pitted against Maintenance, Facilities, Engineering, and Operations with respect to the number and types of SKUs, capital and critical spares, obsolete inventory, inventory investment, and turnover and program operation. Why does this happen so often and how can it continue today when all companies are looking to significantly reduce costs? The answer is simple: Fear of stockouts, perception of inventory as “cheap Insurance,” and the lack of knowledge with respect to the total cost of holding inventory. Fear of not having the necessary materials available when equipment fails and therefore stopping production/operations and the loss of revenue associated with that downtime. “Cheap insurance” is based on the thought process that inventory is typically expensed when received vs. issued and that cost is small compared to any potential loss of revenue that could occur if operations/production was halted for any measurable period of time.
Authors:
Michael G. Patton
Topic:
Tools for the Effective Supply Manager



Title:
Mitigating Supply Chain Risks
Abstract:
Is your supply chain at risk of failure? Are your existing supply chain strategies increasing that risk? In 1995, an earthquake hit the port town of Kobe Japan, destroying 100,000 buildings and shutting down Japan’s largest port for 26 months. This great disaster forced 1,000s of firms to alter production, distribution, and inventory strategies just to survive. Procter and Gamble and Texas Instruments had to move their headquarters. B ut the worst part was that four major automotive firms had to halt production of more than 50,000 cars as parts couldn’t make it through the destruction. While this type of failure doesn’t occur everyday, the supply chain strategies that lead to it do. When a firm takes a traditional, cost minimization approach to supply chain strategy, it often increases its risk of failure or increases its overall cost.
Authors:
J. Michael Kilgore
Topic:
Supply Management: A Strategic Perspective



Title:
Navigating and Networking at the 89th Annual International Supply Management Conference
Abstract:
The importance of better relationships throughout supply management processes is reinforced by the increasing complexity, demand for speed, and pressures for cost control forced on us by the changing world situation. Similarly, rapid economic development, demand for increases in quality and performance, changing political attitudes, significantly improved communication systems, better transportation systems, trends toward economic integration and increasingly intense competition are tremendous social forces driving change in our supply management processes. These social changes will become even more important as we move on into 21st century. This paper defines the process of networking and is my personal advice on how you can use networking to make ISM the 89th International Supply Management Conference a great career building opportunity for you.
Authors:
Robert A. Kemp, Ph.D., C.P.M.
Topic:
Professional Growth: The Key to Your Future



Title:
Negotiating After Deadlock: Moving From Confrontation to Collaboration, Even After They've Said NO!
Abstract:
There are two different approaches to negotiating. One approach holds that negotiating means defending our solutions or positions, proving we are right and winning. The other approach holds that negotiating means meeting mutual, complimentary and differing needs and creating mutual understanding and acceptance. This program explains how to lead people who want to be right and win (the first view) into wanting to meet the needs of both parties (the second view). This is accomplished using four techniques designed to move a negotiation from a point of confrontation to collaboration.
Authors:
F. Michael Babineaux, C.P.M., A.P.P.
Topic:
Tools for the Effective Supply Manager



Title:
Negotiation Master Class: Step Up to the Next Level
Abstract:
Negotiation skills are important for procurement professionals. This session takes a fresh look at tools and techniques for negotiation, offering some new ideas and views to incorporate into your toolkit. Even if you’re not the best negotiator, you can win by being the best prepared negotiator.
Authors:
Joanna L. Martinez, PE
Topic:
Managing and Coordinating Supplier Relationships



Title:
One Sourcing Strategy Does Not Fit All: How to Select the Right Sourcing Strategy to Maximize Results
Abstract:
The typical North American based purchaser of raw materials and operating goods and services buys more than 300 unique categories from more than 10,000 unique suppliers. The internal (demand drivers, key stakeholders, business processes) and external (supply markets, business processes) characteristics of the 300 or more categories vary greatly from category to category. Intuitively, it would be easy for a sourcing professional to envision the need for a wide variety of sourcing strategies for categories that possess characteristics that vary as widely as life insurance, corrugated packaging, MRO supplies and janitorial services (categories all purchased by typical ISM member companies/participants). As trends in sourcing processes, tools, techniques, methodologies and service providers come into vogue and go through usage trials and cycles with purchasing entities, it is common for buyers to adopt the sourcing approach/tool that is currently most popular or that they are most comfortable with rather than the sourcing approach that is best suited to the category. For example, the first half of the 1990’s saw the strong emergence of “the 8 step strategic sourcing methodology” while the late 1990’s and early 2000’s saw the popularity of Internet based reverse auctions soar. Similarly the popularity of consortiums, aggregators and buying groups has risen and fallen several times in the last decade. Drawing on extensive experience with Fortune 1000 companies, this presentation will guide the audience through segmentation of a typical Fortune 1000 buying category profile and outline potential characteristics these categories may possess. Using examples, the characteristics of particular category types will be mapped to different sourcing strategies, tools and methods such that audience participants will be able to guide their sourcing appropriately based on the categories being selected to source.
Authors:
Keith Hausmann
Topic:
Managing and Coordinating Supplier Relationships



Title:
Price, Cost, Value, Benefit, Gain, Worth...Which Way Do I Turn?
Abstract:
Today’s economic and business conditions require everyone involved in procurement and supply chain management to be continually reviewing the effectiveness and efficiency of their performance through metrics and measurement. However, behaviors are frequently driven by metrics and targets imposed by people other than the individuals most affected by those very measures. The wrong measures can deliver the wrong behaviors. This presentation will address a number of learnings from the presenter’s personal experience of over 20 years practical supply management recently enhanced through a number of years working with leading academics. Some common “myths” will be exposed, some “givens” will be questioned, and some lessons learned by companies along this path will be shared. This paper will focus on the emphasis placed on different metrics at different times and will suggest some ways companies can begin to apply a structured approach to selection and maintenance of the set of measures that will be most likely to help them successfully achieve sustainable competitive advantage through integrated supply chain management.
Authors:
Nick Little, MCIPS
Topic:
Supply Management: A Strategic Perspective



Title:
Process Management: Creating Supply Chain Value
Abstract:
The creation of value in the supply chain requires a focused approach to both internal and external processes. Process Management is one approach to recogni zing value for all members of the supply chain. Process Management is a business model and must be developed throughout the organization. Other management tools such as ISO 9000, Six Sigma or Lean Manufacturing can be used in conjunction with Process Management by incorporating the correct tool into the proper step of the model, therefore eliminating the management “tool of the year” scenario. The model is designed to be used at the organizational level, but value can be gained by the application of the model at the process or department level. From a supply chain perspective, Process Management insures the inclusion of both the customer and supplier in the value equation.
Authors:
Carol L. Marks, C.P.M.
Topic:
Tools for the Effective Supply Manager



Title:
Procurement Outsourcing: Finally Reaching the Status of a Proven Paradigm
Abstract:
Business Process Outsourcing is not only accepted now but expected in today’s marketplace. This session highlights how Procurement Outsourcing operations is being considered just as Human Resources, Finance, Accounting, Customer Service/Call Centers and similar areas are already in place and has reached the status of a proven paradigm. Continuing cost pressure will drive companies to doing more with less; procurement will be more on the spotlight and therefore, companies would like to see focusing on their core business. Many companies are outsourcing and are moving many of their back-office operations overseas. Although most Fortune 500 corporations have implemented some form of eProcurement, outsourcing and strategic sourcing, one significant area of opportunity is exploring Procurement Outsourcing overseas especially in the Philippines, India and China. It is also most important to understand what aspect can be outsourced especially in procurement when it is done offshore. The big revelation is: There can be a lot to be outsource! The principal challenge will be to derived more than cost savings. Procurement outsourcing is a powerful weapon that many leading companies will use to create and build new and strategic competitive advantages.
Authors:
Charlie Villasenor
Topic:
Leading Practices with Proven Results



Title:
Procurement Value Creation at Bayer
Abstract:
Discover how the Bayer Group, a global leader in the Polymers, Chemicals, Crop Science and Health Care markets, is transforming their internal procurement community from “Good to Great”. In addition to establishing stretch goals and utilizing best practices, Bayer has developed and successfully implemented a comprehensive Strategic Sourcing and Negotiation Management (SSNM) Process that has resulted in significant total cost of ownership reductions in traditional and non-traditional areas of spend. This process has enabled procurement at Bayer to notably impact the bottom line and ultimately contribute to the competitive advantage of the Bayer Group. As of January 2003, the “customer” scope of the various procurement-related products/services that have been utilized internally by Bayer has been expanded to include clients external to Bayer.
Authors:
Dr. Soheila Lunney
Topic:
Tools for the Effective Supply Manager



Title:
Procurement: How to Win the Game
Abstract:
In any game, the better you understand it, the more likely you are to win. Procurement, like sport, is played by teams, follows certain formats or processes and, done right, should be bound by rules. Understand how to play Procurement, and you can play a winning game.
Authors:
Ross Darrah
Topic:
Leading Practices with Proven Results



Title:
Protecting Your Most Important Investment -- YOU
Abstract:
In the face of constant change in today’s workplace, an individual must take steps to protect their most important investment -- the time, energy, money and education committed to one’s self and their profession. Individuals can make better career plans if they can imagine themselves as ‘the boss’. By adopting an entrepreneurial spirit about their work, one will make better choices concerning current and future jobs or assignments. Eleven tips help guide the individual as they make those choices.
Authors:
James T. Phillips, C.P.M., A.P.P.
Topic:
Professional Growth: The Key to Your Future



Title:
Reinventing the Purchasing Function: The Transition from Traditional to Strategic
Abstract:
How can a purchasing department be turned into a strategic contributor? Many firms have turned the corner, and are now regarded by their management as an integral part of their strategic plan. Altogether too many others still have not made the change. Many believe that this is THE biggest challenge that the profession will face over the next ten years, and may even determine if the profession survives for the next fifty.
Authors:
Brian G. Long, Ph.D., C.P.M.
Topic:
Supply Management: A Strategic Perspective



Title:
Revitalizing the Supplier Diversity Value Proposition Through Supply Chain Effectiveness
Abstract:
Supplier Diversity is an important element in supply chain optimization. Conversely, supply chain effectiveness plays an essential role in any successful supplier diversity initiative. This workshop will explore in depth the revitalization of supplier diversity through a renewed focus on effective supply chain management. The recent upheavals in the telecommunications industry presented tremendous challenges to the supply chain and to supplier diversity. In response, SBC Communications convened a Task Force of experts to study how to revitalize supplier diversity during an economic downturn. The Task Force concluded that the approaches necessary to strengthen supplier diversity initiatives were the same approaches needed to strengthen the overall supply chain . By focusing on effective sourcing practices, enhanced risk mitigation, process quality and control, improved access to capital and financial management along with more robust industry collaboration, both goals can be achieved. Over twenty recommendations are offered to achieve supply chains with strong supplier diversity participation.
Authors:
Maureen Merkle
Joan Kerr
Topic:
Supply Management: A Strategic Perspective



Title:
Selecting Suppliers that Suit Your Business Model
Abstract:
A good supplier selection process does not merely frame the evaluation of several competitors to determine which supplier offers the lowest total cost of goods or services, but rather it starts a supplier relationship meant to convey certain, agreed-upon benefits to each party for a period of time usually measured in years. Keeping the big picture in mind while evaluating the details of an offer is a challenge to many, but sometimes we aren’t even looking at the right picture. This discourse asks you to consider the effect of your supplier choices on the entire supply chain and on the competitive business model linked to the firm’s sales proposition.
Authors:
Susan Scott, C.P.M.
Topic:
Supply Management: A Strategic Perspective



Title:
Simplified Acquisition Procedures for Federal Purchases
Abstract:
Simplified acquisition procedures for federal purchases include everything from very small purchase card transactions up to purchases of commercially available supplies and services of up to $5,000,000 per order. During fiscal year 2002, this amounted to nearly 8 million contracting actions, totaling over $15 billion dollars. (FPDC) This paper discusses the policies and procedures generally used by Government buyers to acquire supplies and services under the rules of Part 13 of the Federal Acquisition Regulation (FAR), using a variety of purchasing methods collectively known as simplified methods. This generally covers all items bought below the micro-purchase threshold of $2,500 and those covered under the simplified acquisition procedures (SAP) threshold of $100,000 (higher in certain national security areas), in addition to purchases of commercial items up to $5,000,000.
Authors:
Ronald L. Straight
Topic:
Tools for the Effective Supply Manager



Title:
Six Sigma Supply Environment Analysis
Abstract:
The environment of a change process affects the nature and success of a change program. This extended workshop focuses on the use of environmental assessment tools in the context of attempting major supply improvement initiatives. It is relevant to supply managers regardless of whether they are currently using Six Sigma methodologies, but it will have particular relevance to organizations implementing or considering implementing Six Sigma.
Authors:
Kimball E. Bullington, Ph.D.
Topic:
Leading Practices with Proven Results



Title:
Strategic Sourcing: A Step-by-Step Practical Model
Abstract:
We hear and read a great deal of information in our Supply Chain profession about Strategic Sourcing. It is one of the most powerful tools that supply chain professionals and organizations have available to them to bring significant bottom line results to our company P&L statements. As our profession has evolved from the Purchasing Agent to Supply Chain mentality, strategic sourcing culminates the transformation as a collaborative process that is producing immediate and significant results required by the CEO. This workshop will be beneficial to both the seasoned supply chain professional as well as those who are new to our profession and will (1) define what is strategic sourcing, (2) provide a step by step review of a practical model, and (3) outline the benefits of successful sourcing initiatives.
Authors:
Robert J. Engel
Topic:
Supply Management: A Strategic Perspective



Title:
Strategic Sourcing: Reducing Cost and Supporting Diversity Goals
Abstract:
Today, procurement professionals achieve savings through sourcing strategies like volume consolidation, product specification improvement, best price evaluation, and competitive global sourcing. Procurement professionals are also tasked with meeting Supplier Diversity goals and increasing spend and opportunities for minority and women owned suppliers. Is achieving these savings through strategic sourcing while supporting a supplier diversity initiative possible?
Authors:
Tim Dolan, C.P.M.
Karen M. Fedele, C.P.M.
Topic:
Supply Management: A Strategic Perspective



Title:
Strategies and Tactics to Avoid Price Increases
Abstract:
If you’re like most businesses – under pressure to provide ever greater returns to your stockholders – you can bet that your suppliers are too. And you can bet that many of them aren’t putting much thought into how they’ll achieve that return. Most of them will go for the easy option – raising the price they charge you, their customer, for their product or service.
Authors:
Ross Darrah
Topic:
Tools for the Effective Supply Manager



Title:
Strategies for Women in Supply Management: How to Overcome the Final Hurdles
Abstract:
Women bring unique strengths to the workplace and have made significant inroads into middle and upper management but appear to still lag behind to some degree in traditional male dominated industries. While the trend appears to be positive, women are interested in knowing how they can improve their chances for advancement and provide value to their employers. In an attempt to gain insight from “real” women in the industry of supply management, a survey was conducted and information tabulated. Some of the “glass ceilings” of the past appear to be alive and well but most women are confident that the future holds an open door for women to succeed in supply management.
Authors:
Cheryl O. Ransom, C.P.M., A.P.P.
Tracey K. Stevens, C.P.M., CPPB
Topic:
Tools for the Effective Supply Manager



Title:
Supplier Diversity is Good Business
Abstract:
We are all charged by our respective organizations to carry out the “five commandments of Purchasing.” They are: providing the right products in the right quantity at the right time to be delivered at the right place at the right cost. We are to be mindful that nowhere is there mentioned in the commandments from whom the products or services should be bought. Nor is it implied that we should include or exclude from our buying strategies any business because of race, gender, ethnicity, nationality or religion. The commandments address the issues that impact the bottom line. If they are executed appropriately the bottom line will be favorably impacted, otherwise…we lose revenue.
Authors:
Wallace E. Young, C.P.M.
Topic:
Supply Management: A Strategic Perspective



Title:
Supplier Evaluations: Best Practices and Creating or Improving Your Own Evaluation
Abstract:
In supply chain management, buyer-supplier relationships are critical to the success of the strategic goals of a company. In order for a buyer to keep track of these relationships and assess supplier performance an evaluation process must be in place. Supplier evaluation processes can be informal or formal, as you may have seen from past studies done in supply management; this study will focus ore on formal evaluation processes. Formal supplier performance evaluations can provide both objective and subjective rating of the buyer-supplier relationship. These evaluations can come in a variety of formats. If used correctly, these supplier evaluation matrices can become an important tool in determining the long-term success of a company.
Authors:
Valerie J. Stueland, A.P.P.
Topic:
Leading Practices with Proven Results



Title:
Supplier Relationship Management During an Acquisition
Abstract:
The presentation describes the planning activities, process steps, requisite due diligence and pitfalls associated with supplier relationship management during a corporate acquisition. Based upon more than twenty years management experience at AT&T, Lucent Technologies and most recently at Comcast Cable, my presentation focuses upon continuity of supply for critical material and services both pre and post close. In the midst of the turmoil, confusion and “swirl of rumors” associated with an acquisition; the project management team must take the necessary steps to ensure the combined entity has sufficient supply during the transition period and beyond. The importance of timely, clear, effective communications with the supply base to accomplish supply continuity is also underscored.
Authors:
John F. Kist
Topic:
Managing and Coordinating Supplier Relationships



Title:
The Evolution of Contract Writing
Abstract:
Although many derivations have occurred over the years with contract writing it has always been agreed that a Contract is a binding legal document between at least two parties. In ancient times we see similar structure to the yet modern version of US law and that of the English Law. We will explore briefly the earlier contracts and their contents but concentrate on a modern day acceptable contract with the specific terms required in order to conduct business relationships.
Authors:
Eileen Byrne-Halczyn, Ph.D., CPCM
Topic:
Leading Practices with Proven Results



Title:
The Inclusive Supply Chain – A Competitive Advantage Strategies for Minority and Women Business Sourcing
Abstract:
Through focused strategies, corporations can work with large prime suppliers, minority and women business councils, government agencies and others to insure that diverse suppliers add value and provide mutual competitive advantage. ChevronTexaco’s Procurement Organization’s vision is to leverage the Company’s worldwide spending power – spending money smarter, without compromising quality and service. The goal of this organization is to elevate ChevronTexaco’s procurement business processes to achieve a sustained worldwide competitive advantage among its peers. Supplier Diversity is an integral part of ChevronTexaco’s long term business plan because diverse suppliers contribute to the company’s overall vision of sustained performance, provide innovative cost – effective solutions and processes and strengthen the company’s overall position with respect to changing demographics of its customer base.
Authors:
Audrey Goins Brichi
Topic:
Managing and Coordinating Supplier Relationships



Title:
The People Side of the Supply Chain: Handling Office Road Rage
Abstract:
It is not uncommon to experience a working environment which supports gossip, snide remarks, and icy silences. We all remember such events occurring when we were in high school. Only this isn’t the high school cafeteria it’s “our” office. What we will look at in this paper is the causes and perhaps ways to mitigate such behavior. Behavior which we would all agree is certainly counterproductive.
Authors:
Elaine N. Whittington, C.P.M., CPCM
Topic:
Tools for the Effective Supply Manager



Title:
The Supply Web - A Comprehensive Approach to Managing Supplier Bases
Abstract:
Many organizations are currently using the Internet to communicate with suppliers for mostly tactical reasons - expediting, perhaps sending POs, etc. Now it is time to "kick it up a notch" and develop both strategic and tactical tools that will "weave a supplier web" that encompasses the entire supply base.
Authors:
Lee Krotseng, C.P.M.
Topic:
Managing and Coordinating Supplier Relationships



Title:
The Surprises in the Waste Barrel
Abstract:
Customers everywhere demand better products or services quicker with improved cost control and responsiveness. Concurrently, they demand continuity of supply and more involvement with suppliers and others to provide unexpected results. The key concept making this all possible is to significantly reduce waste and its costs. This presentation shows how managing the seven types of waste holds great potential to improve supply chain operations, reduce cycle time, control costs and enhance quality and process productivity. We will identify seven types of waste and establish ways to quickly eliminate or significantly reduce waste and costs. We will look at several processes that can quickly help an organization control or eliminate waste and its subsequent costs. These synergistic processes must involve our suppliers and their support for the program. We will learn to evaluate existing procedures, extend the range of knowledge concerning lean operations along with supplier relations and cost control and to consider new ideas concerning change. Eliminating waste and cost is the goal and we get there by being lean.
Authors:
Robert A. Kemp, Ph.D., C.P.M.
Topic:
Tools for the Effective Supply Manager



Title:
Transforming the Procurement Department from Cost Center to Profit Center
Abstract:
In many organizations, Procurement and Accounts Payables functions are viewed as cost centers – and thus an expense for the organization. In today’s environment the importance of being viewed by senior management as a value-added organization (i.e. profit center) versus a cost center may be the single most important change that is achievable.
Authors:
Timothy R. Campbell
Ronald E. Butler
Topic:
Tools for the Effective Supply Manager



Title:
Understanding and Assessing Supply Chain Trust: The Inside Story
Abstract:
Trust is the fundamental building block of organizational success, both internally and externally. Given this elevated status, it is essential for supply professionals to dissect, analyze, and manage the constituents of trust. The workshop addresses trust as an essential managerial tool that encourages commitment and performance. Among the highlights of this session will be the administration of an actual supply chain trust assessment tool.
Authors:
Stanley E. Fawcett, Ph.D.
Alvin J. Williams, Ph.D.
Topic:
Managing and Coordinating Supplier Relationships



Title:
Undue Influence: An External as Well as Internal Challenge
Abstract:
Do Customers tell you what they want, who has it and when it can be delivered? Do Suppliers find the “only” solution to your latest requirement? If so, you’re suffering from Undue Influence. Discover four steps in handling attempts from outside as well as inside to influence your sourcing solutions.
Authors:
James T. Phillips, C.P.M., A.P.P.
Topic:
Leading Practices with Proven Results



Title:
Using Business Process Outsourcing in Supply Management
Abstract:
This workshop is targeted to organizations that are evaluating outsourcing some of their business processes in Sourcing. We will discuss the evolution of Business Process Outsourcing (“BPO”), its advantages and risks, steps to identify which process to outsource, how to select a supplier and develop a well executed plan to successfully implement the BPO. The presentation will focus on the practical applications of BPO in sourcing and its contribution to improving supply management.
Authors:
Sam Gadodia
Larry C. Giunipero Ph.D., C.P.M.
Diane Denslow
Topic:
Supply Management: A Strategic Perspective



Title:
What to Tell Your Sales Force When They are Deciding Whether to Participate in a Reverse Auction As Suppliers?
Abstract:
This paper is intended to help purchasing and supply professionals (a) understand reverse auctions (also called “competitive bidding events”) from the perspective of the supplier; (b) understand when reverse auctions make sense to suppliers, (c) understand effective strategies that suppliers can use when participating in reverse auctions, and (d) effectively coach their sales personnel regarding participation in reverse auctions as suppliers.
Authors:
Dr. Michael A. McGinnis, C.P.M., A.P.P.
Loren E. Marr, C.P.M., A.P.P.
Topic:
Tools for the Effective Supply Manager



Title:
Which Form of Supply Chain Management Will Work Best for You?
Abstract:
The comprehensive definition of “Supply Chain Management” is the coordination of material and information flow from raw material in the ground to the end-customers’ recycling of the expired product. This definition encompasses many activities currently not included under the title of Supply Chain Manager for many reasons. These include: lack of resources, the new definition crosses many lines of responsibility and territorial interests, and insufficient support from top management to effect the required changes. Given these conditions, Supply Chain Management (SCM) has evolved into forms that fit existing business models. (Typically, there is a dividing line between Material and Marketing that is not crossed.) We will look at a some of these forms and some tools that can assist us in realizing the potential of SCM.
Authors:
Michael Harding
Topic:
Supply Management: A Strategic Perspective



Title:
Winning Business Cases: How to Develop, Structure, and Present Them
Abstract:
To be effective as a purchasing and supply chain professional, the ability to develop robust business cases is essential. This paper provides a step-by-step approach to building persuasive business cases to support strategic, tactical, or operational purchasing, sourcing, and supply chain activities. The focus will be on suggesting an approach, identifying key elements, and discussing challenges that must be overcome, particularly in a global setting.
Authors:
Thomas A. Crimi
Ralph G. Kauffman
Topic:
Professional Growth: The Key to Your Future



Title:
Working Together in a Decentralized Environment - Case Study
Abstract:
Working Together in a Decentralized Environment will highlight the difficulties of making strategic decisions for the corporation when there is a decentralization of buying throughout divisions and companies within an organization. This paper will highlight two major strategies that Turner has embraced to enhance its ability to leverage the considerable amount of volume it accumulates.
Authors:
Sheila L. Johnson, C.P.M.
Topic:
Leading Practices with Proven Results